{"id":728895,"date":"2026-06-27T08:51:15","date_gmt":"2026-06-27T08:51:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/728895\/"},"modified":"2026-06-27T08:51:15","modified_gmt":"2026-06-27T08:51:15","slug":"gen-zs-hiring-hell-is-real-1-in-3-employers-admit-theyre-replacing-entry-level-roles-with-ai-and-tech-and-manufacturing-jobs-are-most-at-risk","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/728895\/","title":{"rendered":"Gen Z\u2019s hiring hell is real: 1 in 3 employers admit they\u2019re replacing entry-level roles with AI\u2014and tech and manufacturing jobs are most at risk"},"content":{"rendered":"\n

For Gen Z, the job market has looked more resilient than many feared. The unemployment rate hasn’t skyrocketed<\/a>, and some of the bleakest predictions about AI wiping out entry-level jobs\u2014including warnings from Anthropic CEO Dario Amodei<\/a> and OpenAI CEO Sam Altman<\/a>\u2014have been tempered by a labor market that has held up<\/a> better than expected. <\/p>\n

However, a new report<\/a> from the Graduate Management Admission Council is throwing a wrench into that optimism. <\/p>\n

One-third of employers say they are replacing entry-level jobs with AI, according to GMAC’s latest Corporate Recruiters survey, which polled more than 600 recruiters worldwide. More than half of the respondents recruit for Fortune 100 or Fortune 500<\/a> companies. <\/p>\n

It’s an indication that Gen Z’s fears are becoming reality: the first ring of the career ladder is genuinely getting harder to reach. <\/p>\n

Technology roles are most exposed, with 40% of employers in the industry saying AI is replacing entry-level positions, closely followed by manufacturing. <\/p>\n

Yet Sabrina White, senior vice president of school & industry engagement at GMAC, said Gen Z shouldn’t interpret the findings as a reason to avoid AI<\/a>. Instead, she argued, the report underscores the importance of learning to use the technology to create business value. <\/p>\n

“Employers are increasingly using AI to automate routine tasks in areas like coding, data processing, and customer service, but they continue to invest in talent that can apply judgment, solve problems, and help organizations navigate change,” White told Fortune in an email. <\/p>\n

“Historically, technology shifts have changed jobs more than they eliminate them\u2014and employers are signaling that this transition will be no different.” <\/p>\n

An MBA can still pay off\u2014but it’s no longer a guaranteed shortcut for Gen Z <\/p>\n

Historically, when the labor market sours, workers often head back to school to sharpen their skills\u2014and that trend is showing up again. Applications<\/a> to graduate business programs jumped 13% in 2024 and another 2% in 2025, as professionals looked to gain an edge in an increasingly competitive hiring market. <\/p>\n

But an MBA isn’t the guaranteed career accelerator it once seemed\u2014especially when many top programs can cost well into six figures.<\/a> <\/p>\n

Just 13% of employers surveyed said they hired more MBA graduates<\/a> in 2025 than they did the year before. Hiring also came in below employers’ own expectations across several business degrees. For example, while 74% of employers expected to hire graduates with a master’s in finance, only 68% ultimately did. <\/p>\n

Story Continues <\/p>\n

Pay may also be leveling off. The median starting salary for MBA graduates<\/a> is estimated to slip to $120,000 this year from $125,000 in 2025. Median starting salary estimates also dipped for bachelor’s degree holders (from $75,000 to $72,000) and experienced hires coming directly from industry (from $110,000 to $107,500). <\/p>\n

Still, the long-term value of a top MBA hasn’t disappeared altogether. For graduates of some programs the payoff can still be substantial. For example, at Harvard, MIT, and Wharton, graduates are making over $245,000<\/a> just three years after earning their degrees. <\/p>\n

According to White, employers aren’t souring on graduate business education altogether. Instead, at a time when companies are rethinking headcounts, the bar is being raised for what they expect graduates to bring to the table. <\/p>\n

“Confidence in graduate business education remains extraordinarily strong because employers see these graduates as uniquely equipped to navigate complexity, make decisions in uncertain environments, demonstrate high cross-cultural competency, and translate emerging technology into business impact,” White said. “What stands out to me is that employers aren’t lowering expectations\u2014they’re raising them.” <\/p>\n

CEOs are still betting on young talent\u2014but the job description is changing <\/p>\n

That shift is showing up well beyond business schools. <\/p>\n

Several prominent CEOs (including those at IBM<\/a>, AWS<\/a>, and autonomous trucking startup Waabi<\/a>) have recently said they remain bullish on hiring young talent. Some have even argued that early-career workers can be more advantageous hires than more experienced employees because they’re more comfortable adopting new AI tools, eager to learn, and less constrained by legacy ways of working. <\/p>\n

Today, employers still rank human skills\u2014including communication, problem-solving, and adaptivity\u2014as their top priorities when hiring, according to the GMAC survey. But over the next five years, recruiters expect AI proficiency and technology skills to climb sharply in importance. <\/p>\n

“What employers appear to be saying is not that communication, interpersonal skills, or strategic thinking matter less\u2014it’s that technical and AI fluency are becoming additional expectations\u2026” White said. <\/p>\n

“The future of work belongs to people who can not only command technological capability but also communicate ideas, align teams, and make decisions.” <\/p>\n

This story was originally featured on Fortune.com<\/a> <\/p>\n","protected":false},"excerpt":{"rendered":"For Gen Z, the job market has looked more resilient than many feared. The unemployment rate hasn’t skyrocketed,…\n","protected":false},"author":2,"featured_media":728896,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[182,181,507,76529,10961,93335,153,313363,313362,538,313361,74,2457],"class_list":["post-728895","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-dario-amodei","tag-employers","tag-entry-level-jobs","tag-gen-z","tag-gmac","tag-graduate-management-admission-council","tag-job-market","tag-sabrina-white","tag-technology","tag-unemployment-rate"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/728895","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=728895"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/728895\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/728896"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=728895"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=728895"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=728895"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}